Software your AI can run.
Bank shopping in Michigan? Read this first.
You came here comparing business banks. That's the old question. Holdings built a new category — invoicing that AI can run — and it's what most of the businesses using this comparison table end up on.
Updated August 2026 · 8 banks compared below
A different answer
Holdings isn't a bank.
It's software your AI can run.
The flagship is agentic invoicing — connect Claude, ChatGPT, or Cursor to your Holdings account via MCP and direct your AI to draft invoices, chase payments, and reconcile entries in plain English. No monthly fee. Card processing is 3% + $0.30 per payment collected. Accounting that auto-connects when you want it: $25/mo.
If you're bank-shopping because you're setting up a business, the question you probably actually have is: how do I get paid? Holdings answers that. It works on top of whichever bank you choose from the table below — pick the one that fits, then point your AI at Holdings to handle the rest.
Quick Comparison
These are the top 8 business banks in Michigan we compared, ranked by fees, APY, and features. Holdings is not a bank and not in this table — see what Holdings does instead →
| Bank | Type | Monthly Fee | APY |
|---|---|---|---|
| Holdings | Online | $0 | 1.75% |
| Huntington Business Checking 100 | Regional | $10waivable | 0.00% |
| Flagstar Bank Business Checking* | Regional | $10waivable | 0.00% |
| Chase Business Complete Banking | National | $15waivable | 0.00% |
| Bank of America Business Advantage Fundamentals | National | $16waivable | 0.00% |
| Lake Michigan Credit Union Business Checking | Credit Union | $0 | 0.00% |
| Michigan First Credit Union Business Checking* | Credit Union | $0 | 0.00% |
| Capital One Basic Business Checking | National | $15waivable | 0.00% |
* Rate and fee data sourced from each bank's published schedule. Verify before opening an account.
Detailed Reviews
Holdings
Online | $0/mo | Online only
Businesses wanting free banking + optional accounting from $25/mo
Key Features
- •Free: 48 free tools + $0 banking + 1.75% APY
- •Software ($25/mo): Full double-entry accounting, invoicing, P&L reports
- •Nonprofits: fund accounting at $25/mo + free verified profile & directory listing
Pros
- ✓$0 banking — no monthly fees, no minimums, no transaction fees
- ✓1.75% APY on every dollar — among the highest in business banking
- ✓48 free tools: invoices, estimates, payroll calculator, receipt scanner
- ✓Full accounting from $25/mo replaces QuickBooks
- ✓Free verified nonprofit profile + directory listing for 501(c)(3)s
Cons
- ✗No physical branches
- ✗Less name recognition than legacy banks
Huntington Business Checking 100
Regional | $10/mo | 350 branches
Michigan businesses wanting the state's largest branch network and SBA lending
Key Features
- •Ohio-based regional giant with dominant Michigan presence ($276B in assets)
- •24-Hour Grace for overdraft protection — extra day to cover
- •Strong SBA lending — consistently a top SBA lender
Pros
- ✓Largest branch network in Michigan — over 350 locations
- ✓Top SBA lender with strong small business support
- ✓24-Hour Grace gives extra time to cover overdrafts
Cons
- ✗Only 100 free transactions per cycle
- ✗No interest earned on business checking
- ✗Based in Ohio — not Michigan-headquartered
Flagstar Bank Business Checking
Regional | $10/mo | 150 branches
Michigan businesses wanting a state-headquartered bank with strong lending
Key Features
- •One of Michigan's largest banks ($90.1B in assets)
- •Troy, MI-headquartered — true Michigan bank
- •Strong mortgage and business lending products
Pros
- ✓Largest Michigan-headquartered bank by assets
- ✓Strong mortgage and commercial lending
- ✓Extensive branch network across Michigan
Cons
- ✗Monthly fee if minimum balance not maintained
- ✗Digital banking experience not as polished as Chase
- ✗Post-NYCB acquisition may bring operational changes
Chase Business Complete Banking
National | $15/mo | 200 branches
Established businesses needing full-service branch banking and merchant services
Key Features
- •Built-in payment acceptance via Chase QuickAccept
- •Integrated invoicing and cash flow tools
- •Same-day deposits with QuickAccept
Pros
- ✓Best-in-class mobile app and digital tools
- ✓Strong Southeast Michigan branch presence
- ✓Integrated payment acceptance and invoicing
Cons
- ✗$15/month fee unless $2,000 balance maintained
- ✗Only 100 free transactions per cycle
- ✗Less statewide coverage outside SE Michigan
Bank of America Business Advantage Fundamentals
National | $16/mo | 40 branches
Businesses that qualify for Preferred Rewards tier benefits
Key Features
- •200 free transactions per statement cycle
- •No monthly fee for first 12 statement cycles
- •Preferred Rewards for Business program for rate discounts
Pros
- ✓200 free transactions and first year free
- ✓Strong digital banking platform
- ✓Strong integration with Zelle and digital payment tools
Cons
- ✗$16/month fee after first year
- ✗Fewer Michigan branches than Huntington or Chase
- ✗Higher minimum balance to waive fees
Lake Michigan Credit Union Business Checking
Credit Union | $0/mo | 65 branches
Michigan businesses wanting fee-free credit union banking with high member satisfaction
Key Features
- •Michigan's largest credit union ($14B+ in assets, 625,000+ members)
- •65+ branches across West and Southeast Michigan
- •Nationally recognized for savings rates and member service
Pros
- ✓Largest credit union in Michigan with strong statewide presence
- ✓No monthly service fee on business checking
- ✓Consistently high customer satisfaction ratings
Cons
- ✗Branches concentrated in West Michigan and SE Michigan
- ✗Must qualify for membership
- ✗Less robust mobile app than national bank competitors
Michigan First Credit Union Business Checking
Credit Union | $0/mo | 20 branches
Southeast Michigan businesses wanting personal credit union service
Key Features
- •Lathrup Village, MI-based credit union serving SE Michigan
- •Strong small business lending programs
- •Free business checking with no minimum balance
Pros
- ✓No monthly service fee
- ✓Good small business loan options
- ✓Locally focused with personal service
Cons
- ✗Smaller branch network limited to SE Michigan
- ✗Must qualify for membership
- ✗Fewer digital tools than larger institutions
Capital One Basic Business Checking
National | $15/mo | Online only
Digital-first businesses with occasional cash deposit needs
Key Features
- •Unlimited fee-free digital transactions
- •$5,000/month free cash deposits
- •Cash deposits at select Allpoint ATMs
Pros
- ✓Unlimited digital transactions (no per-transaction fees)
- ✓Strong mobile and online banking
- ✓$5,000 free cash deposits monthly
Cons
- ✗No Capital One branch locations in Michigan
- ✗$15/month unless $2,000 balance maintained
- ✗Limited in-person support
Michigan Banking Landscape
421
FDIC-Insured Institutions
3+
Major Regional Banks
3+
Major Credit Unions
Top Regional Banks
- Flagstar Bank (New York Community Bancorp) — $90.1B
- Comerica (merged with Fifth Third, Feb 2026) — $294.0B combined
- Independent Bank — $5.5B
Top Credit Unions
- Lake Michigan Credit Union — 625,000+ members
- Genisys Credit Union — 280,000+ members
- Michigan First Credit Union — 120,000+ members
State Banking Programs
- •Michigan Small Business Development Center (SBDC) — free counseling and training
- •Michigan Economic Development Corporation (MEDC) — incentives and grants
- •Michigan Women's Business Development Center
- •SBA Michigan District Office — government-backed loan programs
- •Pure Michigan Business Connect — procurement matching
Regulator: Michigan Department of Insurance and Financial Services (DIFS)
Starting a Business in Michigan
| Secretary of State | Michigan Department of Licensing and Regulatory Affairs (LARA) |
| LLC Fee | $50 |
| Corp Fee | $25 |
| Income Tax | 6% Corporate Income Tax (CIT). Individual income tax: flat 4.25%. |
| Sales Tax | 6% state (no local sales tax) |
| Franchise Tax | No franchise tax |
Business Incentives
- •Michigan Business Development Program (MBDP) — performance-based grants
- •State Essential Services Assessment (SESA) — reduced personal property tax for some businesses
- •SmartZones — technology-focused business accelerators
- •No local sales tax — only flat 6% state sales tax
- •MEDC Capital Access Programs — enhanced loan programs
Nonprofit Banking in Michigan
Registration
File Articles of Incorporation (nonprofit) with LARA. $20 filing fee.
Charitable Solicitation
Register with Michigan Attorney General, Charitable Trust Section before soliciting. Initial and annual registration required.
Tax Exemption
Apply to Michigan Department of Treasury for sales tax exemption (Form 3372). Michigan recognizes federal 501(c)(3) status for income tax exemption.
AG Reporting
Annual financial report (Form CT-12) to Attorney General's Charitable Trust Section. Due 6 months after fiscal year end.
Resources
- Michigan Nonprofit Association →
- Michigan Attorney General — Charitable Trust →
- Council of Michigan Foundations →
For Michigan nonprofits
Invoicing that AI can run — built for 501(c)(3)s too.
Direct your AI to send donation acknowledgment invoices, track grant receivables, and keep your books current — no monthly fee for invoicing. Works on top of whichever bank your organization uses. Accounting add-on from $25/mo.
Holdings for nonprofits →Where Holdings fits for Michigan businesses
Whichever bank you pick from the list above, Holdings runs alongside it: direct Claude, ChatGPT, or Cursor to draft invoices, chase payments, and keep your books current. No monthly fee · 3% + $0.30 per payment collected.
See how agentic invoicing works →Frequently Asked Questions
What is the best bank for a small business in Michigan?
The best bank depends on your needs. For nonprofits and small orgs wanting zero fees, Holdings offers $0 monthly fees with 1.75% APY. For businesses needing branch access, Huntington and Flagstar both have extensive Michigan presence. For a credit union option, Lake Michigan Credit Union is the state's largest.
Can I open a business bank account online in Michigan?
Yes. Several banks allow online account opening for Michigan businesses, including Holdings (fully online, no branch visit required), Chase, Bank of America, and Capital One. Credit unions like LMCU may require an in-person visit for business accounts.
What do I need to open a business bank account in Michigan?
You'll typically need your EIN (Employer Identification Number), Articles of Organization filed with LARA, a government-issued photo ID, and your business license. Some banks also require an initial deposit.
Are credit unions better than banks for small businesses in Michigan?
Michigan has one of the strongest credit union markets in the country with over 200 credit unions. They often offer lower fees and better rates, but may have fewer branches. Lake Michigan Credit Union and Michigan First are excellent options for local businesses.
What are the cheapest business checking accounts in Michigan?
Holdings offers completely free business checking with no monthly fees, no minimum balance, and no transaction limits. Huntington's Business Checking 100 also has a low $10/month fee waivable at $1,000 balance. Lake Michigan Credit Union offers free business checking as well.
Do Michigan nonprofits need a special bank account?
While not legally required, a dedicated nonprofit bank account helps with IRS compliance, transparency, and donor confidence. Holdings specializes in nonprofit banking with $0 fees, 1.75% APY, and tools built specifically for 501(c)(3) organizations.
What taxes do small businesses pay in Michigan?
Michigan imposes a 6% Corporate Income Tax (CIT). There is no personal income tax on business income for pass-through entities beyond the flat 4.25% individual income tax. The state sales tax is 6% with no local additions. There is no franchise tax.
Or skip the bank comparison.
Try software your AI can run.
Invoicing, payment links, and connected accounting — directed by Claude, ChatGPT, or Cursor. No monthly fee to start.
Not ready to switch yet? Use a free tool now
Built by Holdings — the banking + accounting platform that keeps businesses and nonprofits audit-ready. Free, no account needed. Connect banking and let your books run themselves when you’re ready.
Ready to stop doing it by hand? Explore Invoicing software for small business, Small business accounting software, or Small business bookkeeping software.
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